In a traditional model for electric power utilities, an electric power utility serves energy users or customers with its own facilities which includes a generator, a transmission network and a distribution network. A transformer station is connected between the transmission network and the distribution network. Consequently, the customer cannot choose between alternative sources of energy and must buy energy from the power utility that operates in its geographic region.
Further, power grids may be organized into control areas which are electrical systems bounded by interconnection metering and telemetry. The load between adjacent control areas is in such case balanced according to a predetermined schedule. If excess demand for electricity is generated in one control area it will receive electricity from adjacent control areas and the control area that is providing the excess electricity then bills the other control area for expenses caused by the deviation.
To avoid such additional expenses caused by deviation, it is known that the operators of the control area perform sophisticated efforts to predict the energy that will be consumed by the customers in the next week, on the next day, and in the next hour.